IDEAS home Printed from https://ideas.repec.org/a/bpj/bejtec/vtopics.4y2004i1n4.html
   My bibliography  Save this article

A Sequential Signaling Model of the Sale of an Invention to an Oligopolist

Author

Listed:
  • King John T

    (Georgia Southern University)

Abstract

I consider the problem of an independent inventor attempting to sell a cost-reducing innovation in an oligopoly setting. There are N potential buyers and the inventor possesses private information regarding the value of the invention. A revealing equilibrium is characterized in which the inventor's demand signals the value of the invention to each potential buyer. I find that both the inventor's demand and his continuation value increase as the number of firms left in the sequence of potential buyers increases. I also find that a firm's probability of rejecting the inventor's demand is higher the sooner the firm is approached in the sequence.

Suggested Citation

  • King John T, 2004. "A Sequential Signaling Model of the Sale of an Invention to an Oligopolist," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 4(1), pages 1-27, May.
    • Handle: RePEc:bpj:bejtec:v:topics.4:y:2004:i:1:n:4
    DOI: 10.2202/1534-598X.1117
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/1534-598X.1117
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/1534-598X.1117?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejtec:v:topics.4:y:2004:i:1:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.